LD 1136
pg. 1
LD 1136 Title Page An Act To Amend the Maine Business Corporation Act Page 2 of 4
Download Bill Text
LR 698
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 13-C MRSA §106 is enacted to read:

 
§106.__Safeguard public interest; damages

 
1.__Sue for damages.__A person may sue a corporation or a
director of a corporation for damages suffered if in the
operation of the corporation the corporation adversely affects
the public interest.__As used in this section, "public
interest" means the environment, human rights, public health
and safety of the community in which the corporation operates
and the dignity of the corporation's employees.

 
Suit may be brought at law or in equity in a court of
competent jurisdiction against the corporation or a director
of the corporation at the time the damage occurred or at the
time the board of directors of the corporation approved the
action that caused the damage.

 
2.__Exemption.__Notwithstanding any other provision of this
chapter, a director of a corporation is not liable for damages
pursuant to subsection 1 if the director can prove that:

 
A.__The damage complained of was the direct result of an
action that was approved by the corporation's board of
directors but that the director had voted against; or

 
B.__The damage complained of was the direct result of an
action approved by the corporation prior to the director's
becoming a member of the board.

 
This subsection does not apply to a corporation or a director
of a corporation if the consolidated annual revenues of that
corporation are less than $15,000,000.

 
3.__Damages; amount; punitive.__ The court may award damages
against the corporation or director of the corporation for a
violation of the public interest if the plaintiff has
established clear and convincing evidence that the corporation
or director knowingly, intentionally or recklessly caused
damage to the public interest or injury to the plaintiff.

 
A plaintiff in a court of law who successfully sues a
corporation or director of a corporation pursuant to
subsection 1 may recover damages in one of the following
amounts, whichever is greater:

 
A.__The actual damage caused to the plaintiff; or


LD 1136 Title Page Top of Page Page 2 of 4